BILL ANALYSIS Ó
AB 1205
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1205 (Gomez) - As Amended May 5, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes the California River Revitalization and
Greenway Development Act (CALRIVER) at the Natural Resources
Agency.
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FISCAL EFFECT:
1)Cost pressures, potentially in tens of millions annually
(Greenhouse Gas Reduction Funds and other special funds) to
fund CALRIVER.
2)Increased costs for the Air Resources Board (ARB) of
approximately $175,000 per year to quantify and report on
river projects to track GHG reductions.
3)Absorbable administrative costs for the Natural Resources
Agency.
COMMENTS:
1)Rationale. Using our river systems to reduce and sequester
greenhouse gas emissions produces numerous environmental,
recreational, and health benefits. However, there is no
existing integrated, statewide grant program to deliver these
benefits.
This bill recognizes the vast potential and establishes the
CalRIVER program.
The program is especially useful in incentivizing projects
that integrate stormwater, natural resource improvements, as
well as reductions in vehicle miles travelled.
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Without this bill, the state will continue to miss the
opportunities to harness the climate values of our riparian
corridors for greenhouse gas reductions, as well as the many
other co-benefits associated with these projects.
2)Background. The California Global Warming Solutions Act of
2006 (AB 32) requires ARB to adopt a statewide GHG emissions
limit equivalent to 1990 levels by 2020 and adopt regulations,
including market-based compliance mechanisms, to achieve
maximum technologically feasible and cost-effective GHG
emission reductions.
As part of the implementation of AB 32 market-based compliance
measures, ARB adopted a cap-and-trade program that caps the
allowable statewide emissions and provides for the auctioning
of emission credits, the proceeds of which are quarterly
deposited into the GGRF available for appropriation by the
Legislature.
The 2014-15 Budget Act allocates cap-and-trade revenues for
the 2014-15 fiscal year and establishes a long-term plan for
the allocation of cap-and-trade revenues beginning in fiscal
year 2015-16.
The Budget continuously appropriates 35% of cap-and-trade
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funds for investments in transit, affordable housing, and
sustainable communities. Twenty-five percent of the revenues
are continuously appropriated to continue the construction of
high-speed rail. The remaining 40% will be appropriated
annually by the Legislature for investments in programs that
include low-carbon transportation, energy efficiency and
renewable energy, and natural resources and waste diversion.
3)Governor's May Revision. The Governor's May Revision revises
revenue estimates for both 2014-15 and 2015-16. The May
Revision projects $1.7 Billion additional GGRF over the next
two years. Of this amount, $700 million is additional
2014-15 revenue and $1 billion is attributed to 2015-16.
Pursuant to the Budget agreement, $600,000 of the additional
$1 billion is subject to the continuous appropriation.
The Governor proposes spending the remaining $1.1 Billion,
with $654 million in new spending and $500 million held in
reserve.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
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